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Reclaiming Former Subscribers to the Colorado Springs Gazette with a Regression Response Model

Summary

Marketing G2, a leader in helping subscription-based companies develop and deploy effective customer relationship management solutions, partnered with the Colorado Springs Gazette for a campaign that introduced a new, innovative "Digital Lifestyle Package" to readers who had stopped their newspaper subscription. In 2010, the Gazette mailed 100,000 direct mail pieces to area constituents and received a low response rate. Marketing G2 was then contracted to develop a response model based on previous campaign performance, mailed only 32,000 pieces, and received more starts in that campaign than the Gazette's previous mailing.

The Process

The Colorado Springs Gazette wanted to introduce their former subscribers to a new bundling of content delivery. Designed to move away from the traditional "Home Delivery" subscription and focus the delivery of content to when and where the customer wants to access it-either through the printed edition, the electronic edition, or through mobile applications, the goal was to extend the Gazette's traditional newspaper brand into the digital world and reposition the delivery concept to favor web and mobile.

The "Digital Lifestyle Package" was targeted towards the best possible prospects in the Gazette's circulation area. Using a response model based on campaign performance that Marketing G2 had conducted previously, twelve different demographic characteristics were selected, with four playing the most significant role-zip code, age category, Prizm Lifestyle Groups, and income level.

Once the target audience was selected, a multi-channel marketing approach was launched to drive sales to three ordering venues-online, telephone, and mail response cards. The financial goal of the campaign was to keep the cost-per-sale under $65 per start and to produce 225 new customers on a total budget of $14,000. As a control for the study, Marketing G2 used old artwork in the direct mail piece, along with a newly designed mailer. Response to both pieces was almost exactly the same. "Using the Marketing G2 regression response model, we were able to send the direct mail to only the best prospects with the highest likelihood to subscribe and after the special offer was up to renew," explained Jim Saylor, a partner with Marketing G2 Direct.

Conclusion

The "Digital Lifestyle" campaign out performed all traditional circulation campaigns in the previous year by more than 100% at a cost of just $41.79 per order. This represented a 35% reduction in the average cost-per-sale budgeted and a 49% improvement in goal achievement over what was budgeted.

The Gazette received 335 new starts, as opposed to the campaign goal of 225.

"Marketing G2 thinks of ourselves as a partner with our clients, not just a vendor. We provided the Gazette with aggressive campaign pricing in return for a backend performance bonus if the campaign meet predetermined new start goals and cost per sale benchmarks," said Patrick Glennon, president of MG2. On May 17, the International News Media Association (INMA) announced that Marketing G2's "Digital Lifestyle Package" campaign won first place in the Print Subscription Sales Under 75,000 category at the 2011 INMA Awards.

Subject Info

Company: Colorado Springs Gazette
Website: http://www.gazette.com/
Date: May 2011
Contact: Patrick Glennon, President, Marketing G2; 215-822-2289; Patrick@marketingg2.com